Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, saw its credit card business become its largest revenue source in the second quarter of 2026. While revenue from the Gemini credit card more than tripled, the company reported a staggering 467% jump in transaction losses, primarily due to an an identity fraud event.
This dual outcome highlights the growing pains associated with diversifying into traditional financial products within the crypto sector. Gemini Space Station, Inc. (NASDAQ:GEMI) reported total revenue of $45.5 million for the quarter ending June 30, a 37% increase year-over-year. However, the firm still posted a net loss of $107.7 million.
Gemini credit card Q2 2026 financial performance at a glance
Gemini’s recent financial disclosures reveal a mixed but strategically shifting landscape. The company is actively pursuing diversification to build resilience against crypto market volatility. Here’s a detailed breakdown of its key performance indicators and operational highlights for Q2 2026.
Credit card leads revenue, but fraud costs bite
The Gemini credit card emerged as a standout performer, generating $16.2 million in Q2 2026. This represents a 231% year-over-year increase, pushing it past the $12.5 million earned from exchange trading. Growth was driven by increased customer usage and higher spending per cardholder.
But this success came at a steep price. Total transaction losses surged to $20.1 million from $3.5 million a year earlier, a 467% jump. A substantial $16.1 million was set aside for expected card losses, primarily due to an identity fraud event affecting a Q1 2026 customer cohort.
Diversification gains traction across services
Beyond the credit card, Gemini’s broader diversification strategy showed promising results. Services revenue climbed 149% to $23.5 million, while staking revenue grew 50% to $4 million. OTC revenue also jumped to $4.7 million, driven by several large client transactions.
These figures underscore Gemini’s push to build revenue streams less dependent on the volatile crypto spot market. Advisory services added $2.7 million, and even prediction market trading volume nearly doubled, contributing around $500,000. These diverse offerings are crucial for long-term stability.
Crypto trading volumes plummet as market cools
While new ventures showed strength, Gemini’s core crypto trading business faced significant headwinds. Total trading volume dropped by 66%, from $11.3 billion to $3.8 billion. Institutional activity saw an even sharper decline, falling from $9.8 billion to $3.1 billion.
This contraction led to a 38% drop in exchange revenue and a 67% fall in custody revenue. Assets held on the platform nearly halved, from $18.2 billion to $8.4 billion, a decline Gemini attributed to lower crypto prices and customer withdrawals.
However, monthly transacting users still increased by 11% to 580,000. This suggests that while trading activity decreased, Gemini maintained its user base, potentially engaging them with newer financial products.
Operational focus on efficiency and resilience
Gemini is actively managing its operational costs amidst market challenges. Operating expenses rose 24% year-over-year to $122.4 million, but they decreased 15% sequentially from Q1 2026. This reflects cost optimization efforts, including a reduction in force in February.
Tyler Winklevoss, CEO of Gemini, emphasized the ongoing strategic shift. He stated the results reflect “our ongoing efforts to reduce operating expenses while diversifying revenue.” Winklevoss believes Gemini is making “significant strides towards building a more resilient company.”
The company’s approach aims for multiple revenue paths less sensitive to crypto market fluctuations. This strategy is vital as Gemini seeks sustained profitability, having posted four consecutive quarterly losses since its Nasdaq listing in September 2025.